OCESD board approves budget, raises health benefits

OROVILLE -- There appears to be light at the end of the fiscal tunnel for Oroville City Elementary School District.

On Wednesday night, the board of trustees approved a new budget and modest health-benefit increases for employees.

Employees haven't had any kind of increases in five years, according to Superintendent Penny Chennell-Carter.

The meeting opened with public hearings for the budget and employee increases.

When all was said and done, the board approved a budget just over $21 million for 2013-14.

Ruthie Anaya, assistant superintendent of business, based the budget on information available last May in Governor Jerry Brown's state budget revisions. Details on what the district will get under the new state budget weren't available.

The district is in better shape than it was before. For one thing, it's no longer under Assembly Bill 1200 oversight by the Butte County Office of Education.

In May, Anaya submitted a third-interim budget report to BCOE showing a 4.68 percent reserve balance at the end of 2015-16.

He also said schools are going to be "in a better place" once Brown signs the state budget.

"It's been a long road, but it's going to be incrementally better," Barron said.

Anaya detailed some of the new budget during the public hearing.

OCESD still faces declining enrollment. The budget shows a revenue limit of $2,452.48 per average daily attendance. Enrollment is projected to be 2,511 students, with 93 percent average daily attendance.

The district will receive a total of $415,000 from the state for implementation of the upcoming Common Core program. Those funds will be received next year and can be spread out over two years.

The budget estimates revenue totaling more than $20.6 million and expenses just over $21 million.

Although staff has cut much of the district's deficit spending, some debt remains. According to the budget, the district projects a deficit of $417,816 for 2013-14, $640,756 for 2014-15 and $411,237 for 2015-16.

The greatest amount of income is from revenue-limit sources, estimated at nearly $13.4 million.

Federal funding is expected to be around $1.9 million for the upcoming year. It has dropped by about 8 percent due to sequestration and will continue to decrease over the next three years, Anaya said.

Salaries remain the biggest expense, with certificated employees budgeted at more than $10 million and classified staff at more than $3 million.

Employee benefits are projected at nearly $4.5 million.

Reserves are estimated to be 9.22 percent in 2013-14.

The board later unanimously approved a motion to increase OCESD's contribution to health benefits by $27 a month per employee, for a total of approximately $46,000. All but one bargaining group has accepted the increase.

Chennell-Carter said before the meeting that they wouldn't have been able to offer the benefit increase if the district was still under county oversight.

She said one reason for the increase is that the district is aware of the struggles employees have also had. Also, district staff expects additional money for schools when Brown signs the state budget package.

"We're trying to show we value and care for our employees," she said.

Trustee Mark Collins summed up the district's outlook with a remark during the meeting: "We'll always have to watch things, but things are looking up," Collins said.